Euro area’s annual headline inflation turns positive in June

Euro area’s annual inflation in June accelerated 0.1 percent, as compared with -0.1 percent recorded in the month of May, according to Eurostat. On a month-on-month basis, consumer prices rose 0.2 percent in June.

Major downward impacts to inflation were due to fuels for transport, heating oil and gas that subtracted 0.41 percentage points, 0.16 percentage points and 0.13 percentage points respectively from the headline figure.

Meanwhile, major positive contributions to the headline print came from restaurants and cafes, and rents and tobacco that contributed 0.11 percentage points and 0.06 percentage points respectively.

Euro area’s core inflation, which strips energy, alcohol, tobacco and food rose 0.9 percent on a year-on-year basis. Non-energy industrial goods inflation accelerated 0.4 percent on an annual basis, whereas it dropped 0.5 percent on a month-on-month basis. Meanwhile, services inflation rose 1.1 percent in the euro area on an annual basis and dropped 0.3 percent on sequential basis.